© 2020 Snowflake Inc. All Rights Reserved.
InvestorPresentationThird Quarter Fiscal 2021
© 2020 Snowflake Inc. All Rights Reserved.
Other than statements of historical fact, all information contained in this presentation, including statements
regarding our future operating results and financial position, our business strategy and plans, product, service,
and technology offerings, market growth and trends, and objectives for future operations, are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements
by terminology such as “may”, “will”, “should”, “plan”, “predict”, “expect,” “estimate,” “anticipate,” “intend,” “goal,”
“strategy,” “believe,” and similar expressions and variations thereof. We have based these forward-looking
statements largely on our current expectations and projections about future events and trends that we believe
may affect our financial condition, results of operations, business strategy, short-term and long-term business
operations and objectives, and financial needs. These forward-looking statements are subject to a number of
risks, uncertainties and assumptions, including those described under the heading “Risk Factors” and elsewhere
in our Form 10-Q that will be filed for the third quarter ended October 31, 2020 and other filings and reports we
make with the Securities and Exchange Commission (“SEC”) from time to time, including our final prospectus
dated September 15, 2020 and filed with the SEC pursuant to Rule 424(b)(4) on September 16, 2020.
Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time
to time. It is not possible for us to predict all risks, nor can we assess the effect of all factors on our business or
the extent to which any factor, or combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements we may make. In light of these risks, uncertainties, and
assumptions, the future events and trends discussed in this presentation may not occur and actual results could
differ materially and adversely from those anticipated or implied in the forward-looking statements.
You should not rely on forward-looking statements as predictions of future events. The events and
circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe
that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the
future results, performance, or events and circumstances reflected in the forward-looking statements will be
achieved or occur. These forward-looking statements speak only as of the date of this presentation and we
undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances
after the date hereof.
This presentation contains statistical data, estimates, and forecasts that are based on independent industry
publications or other publicly available information, as well as other information based on our internal sources.
While we believe the industry and market data included in this presentation are reliable and are based on
reasonable assumptions, these data involve many assumptions and limitations, and you are cautioned not to
give undue weight to these estimates. We have not independently verified the accuracy or completeness of the
data contained in these industry publications and other publicly available information.
The trademarks included herein are the property of the owners thereof and are used for reference purposes
only. Such use should not be construed as an endorsement of such products or services.
This presentation also includes certain non-GAAP financial measures, which have not been prepared in
accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP
financial measures are in addition to, and not as a substitute for, or superior to, financial measures calculated in
accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial
measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP
financial measures differently or may use other measures to evaluate their performance, all of which could
reduce the usefulness of our non-GAAP financial measures as tools for comparison. Please see the appendix
for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents and for the
calculation of certain other financial metrics.
Our non-GAAP product gross profit and operating income (loss) measures exclude the effect of stock-based
compensation expense-related charges, including employer payroll tax-related items on employee stock
transactions, amortization of acquired intangibles, and acquisition and other related adjustments. We believe the
presentation of operating results that exclude these non-cash or non-recurring items provides useful
supplemental information to investors and facilitates the analysis of our operating results and comparison of
operating results across reporting periods.
Free cash flow is defined as net cash provided by (used in) operating activities reduced by purchases of
property and equipment and capitalized internal-use software development costs. Adjusted free cash flow is
defined as free cash flow plus cash paid on employer payroll tax-related items on employee stock transactions.
Free cash flow margin and adjusted free cash flow margin are calculated as free cash flow or adjusted free cash
flow as a percentage of revenue. We believe these measures provide useful supplemental information to
investors because they are indicators of the strength and performance of our core business operations.
1
Safe Harbor and Statement Regarding Use of Non-GAAP Financial Measures
© 2020 Snowflake Inc. All Rights Reserved.
RISE OF THE
DATA CLOUD2014 2019 2020
2
© 2020 Snowflake Inc. All Rights Reserved.
A CLOUD NATIVE
ARCHITECTURE
IS REQUIRED
3
© 2020 Snowflake Inc. All Rights Reserved.
4
SNOWFLAKE’S ARCHITECTURE
© 2020 Snowflake Inc. All Rights Reserved.
5
SNOWFLAKE’S PLATFORM
© 2020 Snowflake Inc. All Rights Reserved.
GROWING MARKET
OPPORTUNITY
DATA
CLOUD~$81B
CLOUD DATA
PLATFORM1
DATA
WAREHOUSE
$14B
6
© 2020 Snowflake Inc. All Rights Reserved.1 Based on the Company’s own estimate as of January 31, 2020.
© 2020 Snowflake Inc. All Rights Reserved.
EXPANDING ECOSYSTEM
SERVICES
TECHNOLOGY
DATA
BUILD
7
© 2020 Snowflake Inc. All Rights Reserved.
Q3 FINANCIAL HIGHLIGHTS
Rapid Growth
at Scale
Improving Product
Gross Margin
Note: Fiscal year ends January 31. All figures are as of Q3 FY21 and, other than product revenue, are presented on a non-GAAP basis. Please see the appendix for reconciliations of
these non-GAAP financial measures to their nearest GAAP equivalents and for the calculation of certain other financial metrics.
115%
70%
YOY PRODUCT REVENUE GROWTH
NON-GAAP PRODUCT GROSS MARGIN
Significant Expansion
with Existing Customers 162% NET REVENUE RETENTION
Strong Large
Customer Momentum 65 $1M+ PRODUCT REVENUE CUSTOMERS
8
© 2020 Snowflake Inc. All Rights Reserved.
93% of revenue is consumption-based1
Revenue recognized variably only as consumption occurs
In many cases, rollover of unused capacity permitted
Contract durations increasing along with larger customer commitments
Primarily billed annually in advance with some on-demand in arrears
Seeing a shift to quarterly in advance and monthly in arrears billing for largest enterprises
WE ARE NOT A SAAS MODEL
9
1 For the nine months ended October 31, 2020.
© 2020 Snowflake Inc. All Rights Reserved.
WE FOCUS ON PRODUCT REVENUE AND RPO
Product Revenue Remaining Performance
Obligations (RPO)Billings
Why it matters:
Substantial majority of our revenue
Customers have flexibility in timing of
consumption
What is and isn’t reflected:
+ Contracted capacity consumed
including excess in period and rollover
from prior periods
+ On-demand capacity consumed
- Contracted customers who have yet to
consume
Why it matters:
Represents contracted future revenue
not yet recognized
What is and isn’t reflected:
+ Deferred revenue
+ Committed unbilled backlog
- On-demand arrangements and
certain time and material contracts
billed in arrears
Why it’s less relevant:
Billings reflect the timing of the cash flows
negotiated with our customers
We have customers who may negotiate to
pay upfront and others in installments, but
the key metrics are how customers utilize
the product (Revenue) and the
commitments they make to lock into
Snowflake (RPO)
Evolving billing terms (annual, quarterly,
monthly in arrears)
10
© 2020 Snowflake Inc. All Rights Reserved.
$96
$252
$1
$13
$97
$265
FY19 FY20
$69 $82
$102 $125
$148 $4
$5
$7
$8
$11
$73 $88
$109
$133
$160
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
QUARTERLY REVENUE (MILLIONS)
174%
YOY Growth
ANNUAL REVENUE (MILLIONS)
119%
YOY Growth
Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.
STRONG COMBINATION OF SCALE & GROWTH
Product Revenue Professional Services and Other Revenue
11
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$273
$426 $468
$688
$928
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
REMAINING PERFORMANCE OBLIGATIONS1 (MILLIONS)
240%
YOY Growth
SIGNIFICANT CUSTOMER COMMITMENTS
Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.1 Represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced
and recognized as revenue in future periods. RPO excludes performance obligations from on-demand arrangements and certain time and materials contracts that are billed in arrears. 12
© 2020 Snowflake Inc. All Rights Reserved.
1,934
2,392
2,720
3,117
3,554
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
31
41
48
56
65
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
CUSTOMERS OVER $1M PRODUCT REVENUE2TOTAL CUSTOMERS¹
84%
YOY Growth
110%
YOY Growth
Note: Fiscal year ends January 31.1 We count the total number of customers at the end of each period. For purposes of determining our customer count, we treat each customer account that has a corresponding capacity
contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. Our customer count is subject to
adjustments for acquisitions, consolidations, spin-offs, and other market activity. 2 Customers with greater than $1 million in trailing 12-month product revenue contribution as of the
corresponding period end date.
LARGE CUSTOMER MOMENTUM
13
© 2020 Snowflake Inc. All Rights Reserved.
106
126
143
153
165
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
FORTUNE 500 CUSTOMERS
56%
YOY Growth
LANDING STRATEGIC CUSTOMERS
14
Note: Our Fortune 500 customer count is subject to adjustments for annual updates to the Fortune 500 list by Fortune, as well as acquisitions, consolidations, spin-offs, and other market
activity with respect to such customers. The Fortune 500 customer count for the three months ended July 31, 2020 has been restated to reflect these adjustments.
© 2020 Snowflake Inc. All Rights Reserved.
189%
169% 171%158% 162%
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
DOLLAR-BASED NET REVENUE RETENTION RATE1
Note: Fiscal year ends January 31.1 To calculate this metric for any given period, we first specify a measurement period consisting of the trailing two years from the corresponding period end. Next, we define as our
measurement cohort the population of customers under capacity contracts that used our platform at any point in the first month of the first year of the measurement period. We then
calculate the net revenue retention rate for that period as the quotient obtained by dividing the product revenue from this cohort in the second year of the measurement period by the
product revenue from this cohort in the first year of the measurement period. Any customer in the cohort that did not use our platform in the second year remains in the calculation and
contributes zero product revenue in the second year. Our net revenue retention rate is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.
WORLD-CLASS RETENTION RATE
15
© 2020 Snowflake Inc. All Rights Reserved.
Cloud agreement pricing
Scale
Better discipline over discounting
Expansion Drivers
NON-GAAP PRODUCT GROSS MARGIN1
IMPROVING PRODUCT GROSS MARGIN
Note: Fiscal year ends January 31. FY21 YTD represents the nine-month period ended October 31, 2020. Numbers are rounded for presentation purposes.1 Please see the appendix for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents and for the calculation of certain other financial metrics.
16
58%
63%
68%
FY19 FY20 FY21 YTD
10 Percentage PointsNon-GAAP Product Gross
Margin Expansion
© 2020 Snowflake Inc. All Rights Reserved.
(152%)
(75%)
(22%)
FY19 FY20 FY21 YTD
114% 103%68%
41%34%
23%
30%
26%
18%
FY19 FY20 FY21 YTD
Significantly Improved
Operating Leverage
Larger renewal mix leading to lower commissions
Larger customer relationships
Economies of scale in R&D and G&A
ADJUSTED FREE CASH FLOW
AS % OF REVENUE1
NON-GAAP OPERATING EXPENSES
AS % OF REVENUE1
Leverage Drivers
S&M R&D G&A
OPERATING LEVERAGE WHILEINVESTING IN GROWTH
Note: Fiscal year ends January 31. FY21 YTD represents the nine-month period ended October 31, 2020. Numbers are rounded for presentation purposes.1 Non-GAAP financial measures. Please see the appendix for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents and for the calculation of certain
other financial metrics.17
© 2020 Snowflake Inc. All Rights Reserved.
907 989
1,082 1,141 1,177 298 311
336 384
440 178
211248
294354
139165
188
218
282
1,522 1,676
1,854
2,037
2,253
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
HIRINGTO ADDRESS OUR OPPORTUNITY
S&M R&D G&A COGS
EMPLOYEE HEADCOUNT BY FUNCTION
18
© 2020 Snowflake Inc. All Rights Reserved.
89% 88% 87% 87% 86%
9% 10% 10% 11% 11%
2% 3% 3% 3% 3%
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
19
EXPANDING INTERNATIONALLY
EMEAAmericas APAC
Note: Numbers are rounded for presentation purposes.
REVENUE MIX BY GEOGRAPHY
© 2020 Snowflake Inc. All Rights Reserved.
% OF REVENUE FY19 FY20 FY21 YTD FY21 GUIDANCE
MIDPOINT
YOY PRODUCT REVENUE GROWTH NA 164% 121% 114%
NON-GAAP PRODUCT GROSS PROFIT1 58% 63% 68% 68%
NON-GAAP OPERATING LOSS1 (136)% (105)% (45)% (40)%
NON-GAAP ADJUSTED FREE CASH FLOW1 (152)% (75)% (22)% (18)%
Note: Fiscal year ends January 31. FY21 YTD represents the nine-month period ended October 31, 2020. Numbers are rounded for presentation purposes.1 Non-GAAP financial measures. Please see the appendix for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents and for the calculation of certain
other financial metrics for historical periods.
FISCAL 2021 GUIDANCE
20
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APPENDIX
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GAAP TO NON-GAAP RECONCILIATIONSPRODUCT GROSS PROFIT AND SALES & MARKETING
Note: Fiscal year ends January 31. FY21 YTD represents the nine-month period ended October 31, 2020. $ in thousands. Numbers are rounded for presentation purposes.
22
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FY19 FY20 FY21 YTD
Product revenue $ 69,213 $ 82,432 $ 101,817 $ 125,216 $ 148,473 $95,683 $252,229 $375,506
Professional service and other revenue 3,799 5,260 6,998 7,929 11,151 983 12,519 26,078
Revenue $ 73,012 $ 87,692 $ 108,815 $ 133,145 $ 159,624 $96,666 $264,748 $401,584
Gross Profit
GAAP product gross profit $ 44,567 $ 53,655 $ 66,284 $ 82,500 $ 96,657 $54,108 $155,607 $245,441
GAAP product gross margin 64 % 65 % 65 % 66 % 65 % 57% 62% 65%
Add: Stock-based compensation expense-related charges 384 472 615 613 7,325 992 1,919 8,553
Add: Amortization of acquired intangibles 282 281 282 281 567 - 849 1,130
Non-GAAP product gross profit $ 45,233 $ 54,408 $ 67,181 $ 83,394 $ 104,549 $55,100 $158,375 $255,124
Non-GAAP product gross margin 65 % 66 % 66 % 67 % 70 % 58% 63% 68%
Sales & Marketing
GAAP S&M expense $ 75,668 $ 80,444 $ 97,877 $ 92,663 $ 134,727 $125,642 $293,577 $325,267
GAAP S&M expense as a % of revenue 104 % 92 % 90 % 70 % 84 % 130% 111% 81%
Less: Stock-based compensation expense-related charges (4,813) (5,424) (6,391) (5,371) (40,337) (15,869) (20,922) (52,099)
Less: Amortization of acquired intangibles (16) (16) (11) (1) - (16) (58) (12)
Non-GAAP S&M expense $ 70,839 $ 75,004 $ 91,475 $ 87,291 $ 94,390 $109,757 $272,597 $273,156
Non-GAAP S&M expense as a % of revenue 98 % 86 % 84 % 65 % 59 % 114% 103% 68%
© 2020 Snowflake Inc. All Rights Reserved.
GAAP TO NON-GAAP RECONCILIATIONSRESEARCH & DEVELOPMENT AND GENERAL & ADMINISTRATIVE
23
Note: Fiscal year ends January 31. FY21 YTD represents the nine-month period ended October 31, 2020. $ in thousands. Numbers are rounded for presentation purposes.
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FY19 FY20 FY21 YTD
Product revenue $ 69,213 $ 82,432 $ 101,817 $ 125,216 $ 148,473 $95,683 $252,229 $375,506
Professional service and other revenue 3,799 5,260 6,998 7,929 11,151 983 12,519 26,078
Revenue $ 73,012 $ 87,692 $ 108,815 $ 133,145 $ 159,624 $96,666 $264,748 $401,584
Research & Development
GAAP R&D expense $ 27,669 $ 29,709 $ 33,278 $ 36,533 $ 74,138 $68,681 $105,160 $143,949
GAAP R&D expense as a % of revenue 38 % 34 % 30 % 27 % 46 % 71% 40% 36%
Less: Stock-based compensation expense-related charges (4,417) (4,929) (5,942) (5,166) (39,406) (29,033) (15,786) (50,514)
Non-GAAP R&D expense $ 23,252 $ 24,780 $ 27,336 $ 31,367 $ 34,732 $39,648 $89,374 $93,435
Non-GAAP R&D expense as a % of revenue 32 % 28 % 24 % 24 % 22 % 41% 34% 23%
General & Administrative
GAAP G&A expense $ 30,318 $ 28,129 $ 31,506 $ 31,186 $ 53,532 $36,055 $107,542 $116,224
GAAP G&A expense as a % of revenue 42 % 32 % 29 % 23 % 34 % 37% 41% 29%
Less: Stock-based compensation expense-related charges (12,919) (9,758) (9,897) (6,840) (27,197) (6,995) (38,257) (43,934)
Less: Amortization of acquired intangibles - - (103) (305) (309) - - (717)
Less: Acquisition and other related adjustments - - - (252) - - (328) (252)
Non-GAAP G&A expense $ 17,399 $ 18,371 $ 21,506 $ 23,789 $ 26,026 $29,060 $68,957 $71,321
Non-GAAP G&A expense as a % of revenue 24 % 21 % 20 % 18 % 16 % 30% 26% 18%
© 2020 Snowflake Inc. All Rights Reserved.
GAAP TO NON-GAAP RECONCILIATIONSOPERATING LOSS, FREE CASH FLOW, AND ADJUSTED FREE CASH FLOW
24Note: Fiscal year ends January 31. FY21 YTD represents the nine-month period ended October 31, 2020. $ in thousands. Numbers are rounded for presentation purposes.
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FY19 FY20 FY21 YTD
Product revenue $ 69,213 $ 82,432 $ 101,817 $ 125,216 $ 148,473 $95,683 $252,229 $375,506
Professional service and other revenue 3,799 5,260 6,998 7,929 11,151 983 12,519 26,078
Revenue $ 73,012 $ 87,692 $ 108,815 $ 133,145 $ 159,624 $96,666 $264,748 $401,584
Operating Loss
GAAP operating loss $(90,132) $(85,112) $(96,403) $(77,683) $(169,454) $(185,465) $(358,088) $(343,540)
GAAP operating loss as a % of revenue (124)% (97)% (88)% (58)% (106)% (192)% (136)% (86)%
Add: Stock-based compensation expense-related charges 22,982 21,079 23,464 18,570 120,468 53,810 78,616 162,502
Add: Amortization of acquired intangibles 298 297 396 587 876 16 907 1,859
Add: Acquisition and other related adjustments - - - 252 - - 328 252
Non-GAAP operating loss $(66,852) $(63,736) $(72,543) $(58,274) $(48,110) $(131,639) $(278,237) $(178,927)
Non-GAAP operating loss as a % of revenue (93)% (73)% (66)% (44)% (30)% (136)% (105)% (45)%
Non-GAAP Free Cash Flow and Adjusted Free Cash Flow
GAAP net cash used in operating activities $(23,750) $(42,792) $(6,592) $(38,685) $(19,754) $(143,982) $(176,558) $(65,031)
Less: purchases of property and equipment (3,157) (4,079) (2,033) (4,715) (17,270) (2,058) (18,583) (24,018)
Less: capitalized internal-use software development costs (1,319) (1,325) (2,189) (981) (844) (1,958) (4,265) (4,014)
Non-GAAP free cash flow $(28,226) $(48,196) $(10,814) $(44,381) $(37,868) $(147,998) $(199,406) $(93,063)
Non-GAAP free cash flow as a % of revenue (39)% (55)% (10)% (33)% (24)% (153)% (75)% (23)%
Add: cash paid for employer payroll tax-related items on
employee stock transactions24 105 3,019 365 812 1,071 217 4,196
Non-GAAP adjusted free cash flow $(28,202) $(48,091) $(7,795) $(44,016) $(37,056) $(146,927) $(199,189) $(88,867)
Non-GAAP adjusted free cash flow as a % of revenue (39)% (55)% (7)% (33)% (23)% (152)% (75)% (22)%